Tactics to get more out of your crypto assets: Staking, Farming and Hodling.

In the last two years, the world of blockchain And of the Cryptocurrencies has been adopted by a more general audience, it is no longer only present in the lives of the most “techies” or innovators, but ordinary people already know or are even familiar with this technology and its great pluses.

It's no longer surprising to hear someone say they own cryptocurrency, and that's great because people are starting to understand the importance of decentralized finance and to put their capital to work.

Even so, the universe of cryptocurrencies and blockchain is much more than creating an account on an exchange, uploading fiat money to the platform and acquiring some Token such as Bitcoin or Ethereum. That's just the surface on which most individuals find themselves, but you can really get a lot more out of cryptoassets acquired and so on Multiply the profits obtained. In this article we are going to discuss the three most famous tactics or activities in this “world” to get an even greater return on our assets as we delve deeper into DeFi.

Staking

We refer to staking when the user keeps a certain amount of funds in a wallet in order to obtain returns from this practice, that is, the user blocks or keeps their assets in a wallet to generate a Passive gain. This action of holding or locking assets in a wallet serves as a backup for the security and operations of a blockchain network.

The user who stakes has the incentive to validate transactions with the aim of receiving a reward, but in the event that the node acts in a malicious way, the user's funds would be deducted by the protocol itself.

The consensus system that we find in this practice is called PoS (Proof of Stake), which implies that in order to obtain consensus it is necessary to demonstrate the possession of funds, and those who carry out this action are compensated.

Let's say that the main idea of this activity is for users to participate Block cryptocurrencies, and over a certain period of time the network randomly assigns to one of these users the right to validate the next block, so that this chosen user will receive a incentive in the currency of the network in which you are carrying out this activity. It should be noted that a user will have a greater chance of being elected the greater the amount of “blocked” funds.

Farming

Yield agriculture or Yield Farming can be considered similar to the staking mentioned above. This practice is based on participation in decentralized finance protocols to receive rewards through two paths.

• Protocol incentives, that is, the native rewards of the project that are given to the users who support the project.
• Tokens for providing liquidity, that is, the user receives native rewards of the protocol in which they are participating.

We could say that this is an activity that consists of earning more cryptocurrencies with your current cryptos. Specifically, it involves “lend” your current funds to third parties and through some Smart Contracts whoever transfers the funds is entitled to commissions in the form of a crypto.

In this type of activity, users are referred to as liquidity providers, because they add funds in the Pools to increase liquidity, an action for which they obtain a reward that comes from the fees generated on the platform itself DeFi. Some platforms with the greatest impact on the farming sector would be Pancakeswap, which includes the liquidity pools of Reental, Sushiswap and Uniswap.

Hodling

Actually the name of this activity comes from the verb in English “hold” What does it mean to keep, however in the crypto community this term was coined with a deliberate misspelling due to a typographical error in a relevant blog in this world.

As indicated by the name, it involves the purchase of a cryptocurrency and its subsequent purchase. upkeep, that is, without sales the buyer waits for the price of the currency to rise and thus generate winnings. This activity is carried out by a maximalist type of user, which means that he is a person who totally believes in the project and therefore does not sell his assets.

On the other hand, it can also be the situation of a user who has no knowledge of the two previous activities and simply has capital invested in a cryptocurrency without touching it, either because of your knowledge or because of the use you want to give to that capital.

After seeing the definition of hodling, we can understand that it is an activity with a vision to Long term regardless of the sharp ups and downs of the market.

Conclusion

All of these activities that we have mentioned make it easier to create a financial system more accessible to anyone in the world without any middleman nor red tape to hinder the process. These activities are extremely attractive for people who are just starting out in this world because they practically make a profit passive, without the participation of the user who practices them.

Although not all that glitters is gold, no matter how good these maneuvers sound, since Reental We warn you that it is necessary to have a good knowledge about these activities, since carrying them out without understanding how the processes work can result in losses not expected by the user, we are always committed to education.

Finally, the most important thing that comes with DeFi It's power diversify an individual's investment portfolio to reduce risk and increase returns, Reental It is another of the diversification options you can choose, with a return little seen in the real estate sector, with much lower risks than other types of investments and with liquidity that the traditional real estate sector does not have.

In order not to miss any of the opportunities we present, we recommend that you join our group of Telegram To get to know others Reentels and the whole team. Of course we invite you to take a look at our articles on the blog to continue informing you.

Welcome to the new way of doing finance, welcome to Reental.